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  • Renewable Fuels Association

Ethanol producers, airlines advise Yellen to ‘immediately’ recognize GREET model for SAF tax credits

As U.S. President Joe Biden kicks off a series of events focused on rural investment, 70 companies including ethanol producers, airlines, aerospace firms, tech providers and others called on the Biden administration to recognize the U.S. DOE’s Argonne GREET model under Section 40B(e) of the Inflation Reduction Act.

In an open letter to Treasury Secretary Janet Yellen, the authors explain that “our ability to attract investment and build out U.S. SAF capacity will depend on how the program determines credit eligibility and valuation.”

According to the Renewable Fuels Association, the default model for evaluating SAF—developed by the United Nations’ International Civil Aviation Organization—misses key aspects of decarbonization, including “climate smart and regenerative feedstock practices” supported by the IRA.

The IRA explicitly allows for the use of “any similar methodology” for determining SAF credit eligibility and valuation.

As the letter explains, the Argonne GREET model “incorporates the latest biorefining and feedstock production efficiencies.”

According to RFA, GREET accounts for “every aspect of the ‘full fuel lifecycle’”—from “land-use changes” to “all stages of fuel and feedstock production and distribution.”

Argonne’s GREET model “clearly meets statutory requirements, and unlike any new approach that would invite further delay, it is well-settled, durable and updated regularly,” RFA stated in a press release.

The authors of the letter note that “with the right market signals, we can decarbonize aviation and spur a new wave of U.S. innovation and clean-energy jobs. However, modeling uncertainty today is a multiyear development problem due to the buildout schedules of SAF production facilities.”

RFA stated that “Section 40B of the IRA cannot be implemented or used effectively if bio-innovators do not urgently receive clarity and certainty on this issue. The administration should immediately recognize Argonne GREET and provide the certainty that will support long-term planning and investment in a more sustainable future for aviation.”

The full letter and list of signatories is available here.



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